Palpa Cement IPO Extension for Local Applicants

23rd January 2026, Kathmandu

Palpa Cement Industries Limited has announced a strategic extension for its Initial Public Offering (IPO), providing additional time for eligible applicants to secure their stake in the company. The company has extended the deadline for the first phase of its IPO, which specifically targets project-affected local residents and Nepali citizens working abroad. Initially opened on Poush 25, 2082, the application window for local residents has now been extended until Magh 11, 2082 (January 25, 2026).

Palpa Cement IPO Extension

This extension has been introduced to ensure wider participation from the local communities in the western districts of Nepal, where the industrial operations and limestone mines are situated. According to the company, the decision was made to accommodate qualified applicants who may have faced logistical delays, ensuring everyone has a fair opportunity to complete the process.

IPO Size and Regulatory Framework

Palpa Cement Industries Limited received formal approval from the Securities Board of Nepal (SEBON) to issue a total of 7.5 million ordinary shares, valued at 750 million rupees. This total issuance represents approximately 20 percent of the company’s paid-up capital of 3.75 billion rupees.

The first phase of the IPO is structured to prioritize those most closely linked to the project:

Project-Affected Locals: 1,875,000 shares (5 percent of the total issued shares) are reserved for residents of West Nawalparasi and Palpa districts.

Foreign-Employed Nepalis: 562,500 shares (10 percent of the general public portion) are earmarked for Nepali citizens working abroad with valid labor permits.

The face value of the shares is set at 100 rupees per unit, making Palpa Cement one of the few cement manufacturers in the current market to issue an IPO at par value rather than at a premium price.

Provision for Unsubscribed Shares and Second Phase

The company has established a clear contingency plan for any remaining shares. If the portions allocated to local residents or migrant workers are not fully subscribed within the revised deadline, the remaining units will be pooled back into the main pot. These shares will then be offered to the general public during the second phase of the IPO.

This two-phase approach is a standard regulatory requirement in Nepal, designed to promote local ownership in industrial projects before opening the floor to the nationwide investing public.

Advertisement

Application Limits and Technical Process

Interested investors can participate in the Palpa Cement IPO with a relatively low entry barrier. The minimum application quantity is set at 10 shares (an investment of 1,000 rupees), while the maximum limit for an individual applicant is 100,000 shares.

The application process is fully digitalized through the C-ASBA (Centralized Applications Supported by Blocked Amount) system:

Local Residents: Can apply through designated branches of Nabil Bank, Prabhu Bank, and Siddhartha Bank in Palpa and Nawalparasi.

Migrant Workers: Can apply via the MeroShare portal or mobile app from their country of residence, provided they have a valid CRN and labor permit.

Nabil Investment Banking Limited has been appointed as the issue and sales manager. They are responsible for overseeing the verification of local residency documents and ensuring that the allotment process adheres to the transparency standards of the Nepal Stock Exchange (NEPSE).

Company Profile: A Leader in Cement Exports

Palpa Cement Industries Limited, a flagship venture of the renowned RMC Group, has quickly established itself as a major player in the industrial sector of Nepal. Located in Sunuwal, Nawalparasi, with its own limestone mines in Rahawas, Palpa, the company operates an integrated plant with a daily production capacity of 1,800 metric tons of clinker and 2,200 metric tons of cement.

The company is best known for its “Tansen Cement” brand and holds the distinction of being one of the first companies in Nepal to successfully export cement and clinker to India. With an “IRN BB+” credit rating from Infomerics Credit Rating Nepal, the company is viewed as having a moderate credit profile with significant growth potential as Nepal’s infrastructure demands continue to rise.

Upcoming General Public Phase

Once the current phase for locals and foreign workers concludes and the data is evaluated, Palpa Cement will announce the dates for its General Public IPO. This second phase will involve the issuance of the remaining 5,625,000 shares. Market observers expect high demand for this issue, given the operational status of the plant and its proven track record of exporting to international markets.

Conclusion

The extension of the Palpa Cement IPO deadline to Magh 11 offers a final opportunity for local stakeholders to become part-owners of one of the most promising industrial assets of the nation. For the company, this capital hike will provide the necessary liquidity to expand its mining operations and further strengthen its position in the competitive regional cement market. Investors are encouraged to consult the official prospectus available at Nabil Invest or the company’s registered office in Thapathali before placing their bids.

For More: Palpa Cement IPO Extension